This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 153A : Assessment-Search or requisition-Sanction non application of mind-Prior approval of prescribed authority in respect of each assessment year is mandatory-Sanction of prescribed authority for 38 cases granted on single day-Assessing officer passing draft assessment order and final assessment order on same day of approval-Approval illegal and non est-Order of Tribunal was up held. [S. 132, 153D, 260A]

PCIT v. Subodh Agarwal (2023) 450 ITR 526 (All)(HC)

S. 153A : Assessment-Search or requisition-Sanction of prescribed authority-Mechanical sanction-Assessing officer passing draft assessment order and on same day approving authority granting approval for 123 assessees-impossible for a person to apply his mind on all cases for all in a single day-Approval is illegal and non est. [S. 132, 153D, 260A]

PCIT v. Siddarth Gupta (2023) 450 ITR 534 / 330 CTR 295 (All)(HC)

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Principle of natural justice-Failure to afford opportunity of hearing-Order and notices set aside-Matter remanded to assessing officer. [S. 147, 148, 148A(b), 148A(d), Art. 226]

Rajesh Kumar Agarwal and Sons (HUF) v. UOI (2023) 450 ITR 545 (Cal.)(HC)

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Principle of natural justice-Order passed without considering the reply-Order set aside-Matter remanded to assessing officer to consider reply and afford opportunity of hearing. [S. 147, 148A(b), 148A(d), Art. 226]

Radha Styores Pvt. Ltd. v. UOI (2023) 450 ITR 543 (Cal.)(HC)

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Principle of natural justice-Reply was uploaded on Monday immediately after public holiday and Saturday and Sunday-Order for issue of show-cause notice without considering reply-Order passed in haste reducing procedure to nullity-A purposive interpretation needs to be given to the statutory provision-Matter was remanded-Directed the respondent to pay cost of Rs. 15000, however on request of the Departmental counsel who has assured that he will take responsibility of conveying as to what would mean by “reasonable opportunity to the assessee“-Portion of direction imposing cost on the Departmental Officer was deleted. [S. 147, 148, 148A(b), 148A(d), Art. 226]

R N Fashion v. UOI (No. 2) (2023) 450 ITR 134/ 331 CTR 209 (Cal.)(HC) Editorial: Order of single judge, set aside, R N Fashion v. UOI (No 1) (2023) 450 ITR 132 / 331 CTR 215 (Cal)(HC)

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Survey-Salary or professional income-Remuneration is not taxable as salary-Remuneration of Doctors working in hospital-Issue of notice without examining the contracts between hospital and doctors-Order and notice not valid. [S. 133A, 147, 148, 148A(d), 149A(d), 192, Art. 226]

Dr. Mathew Cherian v. ACIT (2023) 450 ITR 568 (Mad.)(HC)

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Natural justice-Failure to grant minimum seven days of time to file reply to notice-Notice for reopening of assessment set aside-Matter remanded to assessing officer. [S. 147, 148, 148A(b), 148A(d), Art. 226]

Girdhar Gopal Dalmia v. UOI (2023) 450 ITR 143/ 333 CTR 379/ 224 DTR 439 (Cal.)(HC) Editorial : Decision of single judge in Girdhar Gopal Dalmia v. UOI (2022) 449 ITR 629 (Cal)(HC), reversed.

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Assessee is not expected to prove negative fact-Assessing Officer should verify information collected from other sources-Information not verified-Order is not valid-Directed to pass fresh order after giving a reasonable opportunity of hearing. [S. 147, 148A(b), 148A(d), Art. 226]

Asam Sreenivasa Reddy v. ITO (2023) 450 ITR 244 / 332 CTR 112/ 224 CTR 171//(2022) 145 taxmann.com 659 (AP)(HC)

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Principle of natural justice-Sale of property-Alleged cash receipts-Capital gains-Tax evasion petition on insight Portal-Directed to provide all documents considered by him as information-Order and subsequent notice set aside-Directed to pass the order after considering the reply of the assessee. [S. 147, 148, 148A(d), Art. 226]

Alaknarayan Poosapati Gajapati Raju v. UOI (2023) 450 ITR 297/ 291 Taxman 246 (Delhi)(HC)

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Principle of natural justice-Assessing Officer was directed to supply with material relied-Order and notice set aside-Liberty granted to Department to pass fresh order if necessary. [S. 147, 148, 148A(d), Art. 226]

Abha Goel v. ITO (2023) 450 ITR 704 (Delhi)(HC)